Home>News Center>China
       
 

China forex reserves rose to US$ 818.9b in 2005
(Bloomberg.com)
Updated: 2006-01-16 09:17

China's foreign-exchange reserves rose to a record last year, almost matching Japan's as the world's largest, as a swelling trade surplus and money inflows betting on a currency revaluation boosted holdings.

Reserves rose to US$ 818.9 billion at the end of December from US$769 billion at the end of September and US$610 billion a year earlier, the People's Bank of China said on its Web site today. Japan's foreign-exchange reserves stood at $824 billion at the end of November.

China has been investing its reserves in U.S. government debt and held $247 billion in treasury bonds at the end of October, making the nation the largest investor after Japan. The government is looking for new ways to invest the money to seek higher returns, China's currency regulator said on Jan. 5.

``The bigger the reserves get, the more nervous China is likely to be about keeping them predominantly in dollars,'' said Julian Jessop, chief international economist at Capital Economics in London. ``China's probably not going to do a lot with its existing reserves, but what it might do is put a smaller portion of its new reserves into dollars.''

The nation's reserves of foreign currency, which economists estimate are between 70 percent and 80 percent in dollars, have almost tripled since the end of 2002, lifted by about $170 billion of foreign investment, a cumulative trade surplus of $160 billion and billions of dollars of capital inflows betting on a rising yuan. China revalued its currency by 2.1 percent against the dollar in July and is under pressure from the U.S., Europe and Japan to let the yuan appreciate more.

Diversifying Assets

The central bank bought dollars from commercial banks first to maintain the yuan's peg against the dollar. Since the July 21 revaluation, it's bought dollars to limit the currency's gains, which have been kept at a total of 0.5 percent.

China may invest more of its reserves in other currencies, putting pressure on the U.S. dollar, the European Commission said in a report to European governments that was obtained by Bloomberg News Wednesday.

``There has been indications that China could begin to diversify foreign-exchange reserves away from U.S. dollar assets, something that could put downward pressure on the U.S. dollar,'' the commission said in its report.

Yi Gang, vice governor of the People's Bank of China, told reporters on Dec. 19 that China's policy of diversifying its foreign exchange reserves has long been part of the central bank's strategy.

``We have been trying to diversify for a long time,'' he said in an interview that day.

Inflation Potential

Seeking to slow growth in foreign exchange reserves, the government has relaxed some currency controls. It now allows Chinese companies and individuals to take more money out of the country and on Jan 5. scrapped the limit on investment overseas by domestic companies.

Even so, China's reserves may rise by another 20 percent to $1 trillion by the end of this year, which would the first time for any nation's reserves to reach that level, according to Standard Chartered Bank economists Stephen Green and Tai Hui.

The central bank buys foreign exchange to keep the yuan stable. Those purchases create more yuan, driving money supply growth and making it harder for the bank to control credit expansion.

Growth in money supply has accelerated since March and reached the fastest pace in almost two years in November, which the central bank attributed to a policy of increasing liquidity to support domestic demand and cushion the economy from the effects of July's revaluation.

``The biggest challenge for the central bank is to control the potential inflation that comes along with the buildup in reserves,'' said James McCormack, head of Asia sovereign ratings at Fitch Ratings in Hong Kong, in an interview. ``They seem to have managed reasonably well so far.''



Great minds
Castro on Chinese train
Shopping for Spring Festival
  Today's Top News     Top China News
 

Major cities eye balanced growth for next 5 years

 

   
 

Beijing's approach 'appeals to Taiwan people'

 

   
 

China's interest in Africa no 'threat' - US

 

   
 

China's forex reserves top US$800 billion

 

   
 

China may merge A-share, B-share markets

 

   
 

Thousands join campaign to name pandas

 

   
  Thousands join campaign to name pandas
   
  China may merge A-share, B-share markets
   
  New figures cast doubt on mine closures
   
  Families of haj fatalities to get compensation
   
  Model village to teach others how to improve
   
  Cold cities debate how to make life more pleasant
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  News Talk  
  It is time to prepare for Beijing - 2008  
Manufacturers, Exporters, Wholesalers - Global trade starts here.
Advertisement
         
主站蜘蛛池模板: 性欧美人与动物| 欧美最猛性xxxxx短视频| 日产乱码卡1卡2卡三免费| 亚洲日本中文字幕天天更新| 精品一区二区三区在线视频 | 岛国精品在线观看| 久久免费小视频| 最近2018免费中文字幕视频| 亚洲明星合成图综合区在线| 狠狠夜色午夜久久综合热91| 六十路依然风韵犹存| 美女黄频免费网站| 国产亚洲av片在线观看播放| 高清中国一级毛片免费| 国产成人综合久久亚洲精品| xvideos亚洲永久网址| 极品美女丝袜被的网站| 亚洲欧美日韩在线不卡| 男女一边摸一边做爽爽毛片| 国产成人一区二区在线不卡| 18分钟处破好疼高清视频| 性色爽爱性色爽爱网站| 久久久久九九精品影院| 欧美第一页在线| 伊人久久大香线蕉影院95| 精品久久久久香蕉网| 国产好爽…又高潮了毛片| 99久久精彩视频| 妞干网免费视频观看| 久久精品国产99国产精品| 波多野结衣之cesd819| 免费一级毛片正在播放| 精品国产污污免费网站| 国产成人av一区二区三区在线观看| 综合558欧美成人永久网站| 婷婷激情狠狠综合五月| 中文字幕乱理片免费完整的| 柳菁菁《萃5》专辑| 亚洲区小说区激情区图片区| 男女过程很爽的视频网站 | 99视频精品全部在线播放|